# CIE Accounting Paper-2: Specimen Questions 73 - 74 of 103

## Passage

Singer and Dancer are partners sharing profit in the ratio of 3: 2. Their balance sheet on 31st March 2014 was as follows:

 Liabilities Amount Assets Amount Singer’s Capital 32500 Bank 40500 Dancer’s Capital 11500 Stock 7500 Creditors 48000 Debtors - 21500 Less: Provision for doubtful debts - 500 21000 Reserve fund 13500 Fixed Assets 36500 105500 105500

On 31st March 2014, they decided to dissolve the firm and the following information was provided by them: (i) Debtors were realized at a discount of 5%; (ii) Stock at £7000; (iii) Fixed assets at £42000; (iv) realization expenses were £1500; (v) All the creditors were fully paid.

## Question number: 73 (5 of 5 Based on Passage) Show Passage

### Write in Short

Will Singer and Dancer earn a profit or incur a loss, after the realization of their assets and paying their creditors in full?

### Explanation

 Particulars Amount Amount Particulars Amount Amount Assets transferred Provision for doubtful debts 500 Stock 7500 Creditors 48000 Debtors 21500 Bank Fixed assets 36500 Debtors 20425 Bank expenses stock 7000 Creditors 48000 Fixed assets 42000 Realization expenses 1500 Profit transferred (Bal Fig) Singer’s capital 1755 Dancer’s Capital 1170 2925 117425 117425

Profit = 2925

Singer = 2925 * 3/5 = 1755; Dancer = 2925 * 2/5

Debtors = 21500 – 5%= 21500 – 1075 = 20425

## Passage

Susan Ltd was registered on April 1st 2011 with a capital of £10000000 divided into £1000000 shares of £10 each. The company offered 44000 shares of which 40000 shares were taken up by the public. £1 was received with application. On May 2nd these shares were allotted and by 31st may £2 per share was received as allotment money. First call of £3 per share was made on 30th June, and call money was received with an exception of 100 shares. Final call was made £4 per share and call money was received by 30th September with an exception of 400 shares.

## Question number: 74 (1 of 5 Based on Passage) Show Passage

Essay Question▾

### Describe in Detail

Classify the categories of share capital of Susan Ltd?

### Explanation

In the case of Susan Ltd, the share capital can be classified as:

(i) Authorized share Capital: The maximum amount of capital which Susan Ltd can raise through the issue of shares.

(ii) Subscribed share capital: The monetary value of shares on which the public has shown interest to purchase.

(iii) Issued Share capital: This is the monetary value of shares which the company has issued to the interested public.

(iv) Called up capital: The monetary value which will be received on a later date on shares that have been issued to the public

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